SMITH ELECTRIC VEHICLES World’s largest provider of commercial electric vehicles today with thousands of vehicles on the road and a 90 year history of zero-emission. 1930- Today NOW2 Confidential, 11/7/2012
SMITH MANUFACTURING FACILITIES Smith US Smith Europe Smith East CoastKansas City, Missouri Newcastle, England Bronx, New York3 Confidential, 11/7/2012
Two Platforms with Multiple ConfigurationsPLATFORM CLASS CONFIGURATIONSNewton™ Class 4-6* • Payload up to 16,200 lbs • Up to 150 miles per chargeEdison™ Class 2-3 • Payload up to 5,100 lbs • Up to 110 miles per charge* Class 7 in development 4 Confidential, 11/7/2012
PROPRIETARY SMITH TECHNOLOGIES Drive Train Control System• Prevents use of 3rd party parts• Seamless integration with BMS• Scalable across platforms Telematics• 1,500-2,200 data points per sec• >1,000,000 mile database• Predictive maintenance Cell Agnostic BMS Modular Battery System and Mechanical Packaging• ROI reporting/marketing • Accommodate cells from multiple • Multiple battery size options• Continuous product improvement suppliers • Match capacity to duty cycle • Maximize price competition • Easy to add or subtract capacity • Reduce dependence • Move batteries between trucks • Fast integration of new tech • Control IP so can use EMS 7 Confidential, 11/7/2012
FAVORABLE TOTAL LIFE COST VS. DIESEL Economic Impact Savings vs. Diesel Equivalent Maintenance & Fuel Savings +$87,417 over five years Five Year Total Cost of Ownership +$42,418 Ten Year Total Cost of Ownership +$159,963 Note: Based on 70 miles per day, $4.12/gallon diesel fuel, $0.107 cost of electricity, $0.22/mile cost for diesel maintenance and $0.07/mile cost for EV maintenance. Assumes $20K state incentive per vehicle.8 Confidential, 11/7/2012
SUSTAINABILITY IMPACT: 1/10TH CARBON FOOTPRINT VS. DIESEL Sustainability Impact Savings Vs. Diesel Equivalent Total Greenhouse Gas Offsets 321.10 tons Yr. 5 Gallons of Fuel Eliminated 6,423 gallons Yr. 5 Hours of Driver Diesel Fume >36K hours Yr. 5 Inhalation Spared9 Confidential, 11/7/2012
TRENDS FAVOR FLEET ADOPTION Diesel Fuel Higher Prices Price Volatility for Diesel Trucks ACCELERATING ADOPTION OF COMMERCIAL EVs Aging Government Medium Duty Incentives/Regulation Corporate Support for Truck Fleet Electrification10 Confidential, 11/7/2012
TCO DIFFERENT FOR FLEETS Acquisition Cost and Lifetime Fuel Cost – Passenger Cars versus Medium Duty Trucks $192,000(3) $169,000 (2) $65,000(1) $55,000(1) $30,750 $21,500 $24,250 $19,000 Passenger Cars (4) Medium-Duty Trucks Passenger Cars (5) Medium-Duty Trucks U.S. Europe Vehicle Cost Lifetime Fuel Cost Lifetime fuel costs for commercial vehicles can be 2.5x–3.5x the cost of the vehicle making electrification compelling relative to passenger carsNotes:(1) Smith estimate based on dealer MSRPs(2) Assumes 80 miles per day, 6 days a week, 52 weeks a year; 7 MPG; diesel price of $3.96/gal which represents the average price in the U.S. 2012YTD as reported by the EIA; and average life of 12 years(3) Assumes 80 miles per day, 6 days a week, 52 weeks a year; 11 MPG; diesel price of $7.05/gal which represents the average price across 29 European countries 2012YTD as reported by the Automobile Association; and average life of 12 years(4) Average new car price from TrueCar. Lifetime fuel cost assumes 13,476 miles driven as reported by the Federal Highway Administration; 22.8 MPG as reported by the EPA; gasoline price of $3.75/gal which represents the average price in the U.S. 2012YTD as reported by the EIA; and average life of 10.2 years as reported by the Bureau of Transportation Statistics(5) Average car price from EurActiv. Lifetime fuel cost assumes 13,500 miles driven; 40 MPG; average fuel price (gasoline and diesel) of $7.04/gal; and average life of 10.2 yearsNote: Amounts are rounded 11 Confidential, 11/7/2012
COMMERCIAL DIFFERS FROM PASSENGER Poor Fuel Economy Short Payback Periods Fixed Routes Less Than 100 Miles No “Range Anxiety” No Need to Build Distributed Operate From Central Depots Charging Infrastructure Low Speeds Long Battery Life Lots of Stops and Starts Ideal for Regenerative Braking High Levels of Noise, Vibration Zero Emissions, No Vibration and Air Pollution and Silent Operation Commercial EVs do not face the same issues as passenger EVs12 Confidential, 11/7/2012
HIGHER DIESEL TRUCK PRICES ARE MAKING EVS MORE ATTRACTIVE U.S. Wholesale Commercial Truck and Passenger Car Prices (Indexed to 100; 2004 = 100) 160 Key Drivers Medium Duty Truck Stricter EPA emissions mandates Prices Up 150 State clean air mandates 45%! Producer Price Index Higher CAFE standards 140 California ZEV mandate Upcoming EPA‘13 / GHG‘14 regulations Heavy Duty 130 Truck Prices Up Over 30% 120 110 Car and 100 Light Truck Prices Flat 90 2004 2005 2006 2007 2008 2009 2010 2011 2012Source: U.S. Bureau of Labor Statistics, U.S. Department of Labor, data re-based to January 2004. Medium Duty Trucks are Trucks, Truck Tractors, and Bus Chassis 14,001 to33,000 lbs; Heavy Duty Trucks are Trucks, Truck Tractors, and Bus Chassis 33,001 lbs. or more; and car and Light Duty Trucks are Passenger Cars and Chassis 14,000 lbs or less 13 Confidential, 11/7/2012
DIESEL FUEL PRICE VOLATILITY MAKES ELECTRIFICATION ATTRACTIVE Diesel Fuel Prices versus Commercial Electricity Prices in the U.S. (Indexed to 100; 2002 = 100) 450 400 Diesel #2 350 PriceIndexed Price (2002 = 100) 300 250 200 Commercial 150 Electricity Price 100 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: U.S. Energy Information Administration 14 Confidential, 11/7/2012
DIRECT COMPARISON VS DIESEL Diesel Truck Smith Newton Route Length 100 miles 74% Energy Cost Savings Fuel Efficiency 10mpg 0.8 kwh/mile • Dramatically lower cost • Very low price volatility Diesel Price $3.50/gallon $0.11 kwh 72% Preventative Maintenance Cost Daily Energy Cost $35 $9 Savings • No oil changes Annual Energy Cost $8,900 $2,300 • No filter changes • No transmission fluid changes Annual Preventative Maintenance $900 $250 • No UREA Repair Maintenance Brakes, Exhaust, Brakes, Tires, “There is virtually nothing Engine, Tires, Grease Fittings that goes wrong with Transmission these things” —Mike Payette, Dir. Fleet Equip., StaplesSource: What Staples Expects from All-Electric Medium-Duty Work Trucks, Work Truck Magazine, March 2011 and • Fewer moving parts Company estimates • 20-year electric motor life • Regenerative braking increases brake life We can deliver millions of dollars of savings annually across a large fleet 15 Confidential, 11/7/2012
Significant Fleet Support for Electrification“ …costs of operating and maintaining electric vehicles are significantly less than… traditional internal-combustion-engine vehicles. In some cases we’ve achieved savings of 70% to 80%... – Fred Smith, CEO, FedEx, February 2011, Fortune Magazine ”“ The first million miles with electric trucks have been a journey of understanding and refining both how and where we use these vehicles…we are now in position to more quickly accelerate our strategy and grow the electric vehicle fleet. – Mike O’Connell, Senior Director of Fleet Capability North America, Frito-Lay, May 2012, PepsiCo press release ”“ UPS’ research and development of alternative technologies has determined it is time to explore electric-drive systems within the short-range segment of our delivery fleet…. – Mike Britt, Director of Vehicle Engineering, UPS, August 2011, UPS press release ”“ The addition of…all-electric delivery trucks is the latest example of our commitment to continually improve our delivery fleet and its impact on the environment…Over time, well look to increase the number of these trucks in the Staples fleet… – Mike Payette, Manager of Fleet Equipment, Staples, October 2010, Staples press release ”“ Coca-Cola is proud to partner with Smith Electric Vehicles in making our delivery fleet more efficient. Smith...will help us to accelerate conversion in New York as we continue to build a more efficient and environmentally-friendly Coke fleet. – Steven Saltzgiver, Director of Fleet Operations, Coca-Cola Refreshments, November 2011, Smith press release ”
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